Zerify Inc (ZRFY)

[ZPaul]

$SFOR Let's get the big dollar out of current 3 infringers, big retail sales #'s and release of those large scale enterprise contracts (in 10Q now ) , recurring revenue from OEM's and increasing revenue from licencing it's technology to both Hardware and Software manufactures (Also in 10Q) SFOR can easily trade with 15x-20x P/E. In fact for cyber security company PE ratio is close to 30x.

Look at Symantec, negative EPS, trades at a P/E ratio of 29.65
http://www.nasdaq.com/symbol/symc/pe-ratio

My preferred way of determining if public Internet companies are cheap or expensive on a relative basis is to look at two key ratios:

1. Enterprise value / forward-year revenue and
2. Price/earnings-to-growth ratio, or PEG, (using forward-year earnings).

They also solve two important issues:

1) If you look at some IPOs include companies that are not profitable, making P/E comparison impossible. Therefore, as a first pass, looking at revenue allows you to comp a company like Twitter against its peers. Twitter EV/FY '16 revenue is 21x, and its next closest peer, Yelp, was at 13x. Facebook and LinkedIn trade at an EV/FY '16 of roughly 10x. (Yahoo Finance has EV on its Key Statistics tab and FY revenues on Analyst Estimates.)

2) All earnings are not equal. There are high-growth stocks, like cyber security companies, and the earnings growth is an important factor in comparing peers. PEG Ratio on forward-year earnings adjusts a P/E ratio for growth. If a company trades at a high P/E ratio but is growing really fast, PEG ratio equalizes it and portrays it as less expensive to its slower growing peers.

Growth is very valuable, and PEG adds it to the analysis. Again, you need to make sure to use forward year.

So, getting back to SFOR, it falls under category #2 and growth will be driven by Large scale enterprise contracts ( Ref 10Q) , Licencing it's Technology to both Hardware and software, and recurring revenue from OEM's , Retails and Patent infringement lawsuit money that will add to SFOR bottom line, and I think in due time, you will see it falls close to it's peers like Symantec , Norton, McAfee etc and will trade at a much higher level.